The industry fears it will bear the brunt of a trade war between Brussels and Beijing, which threatens to tax wine-based spirits imported from the EU.
The French Minister for Foreign Trade, Sophie Primas, will try “strongly” in the coming days in Shanghai to convince China to spare the cognac industry, threatened by potential customs surcharges that are devastating for the sector.
His trip, from Sunday to Wednesday, comes in a context of rising tensions between China and the European Union (EU). It will be an opportunity “to strongly mark France's rejection” of Chinese initiatives “arbitrarily imposed” and “whose political character is obvious”, a diplomatic source assures.
The cognac industry says it is “sacrificed”
“They unfairly target France and certain sectors, which have nothing to do” with electric vehicles and “the minister will be keen to bring the voice of farmers and these sectors into her discussions, in particular with the Chinese Minister of Commerce , Wang Wentao”, indicates this source.
The aim is to assure the Chinese authorities “that this type of exploitation of trade defense instruments is unacceptable”, she underlines.
The cognac inter-profession considers itself “sacrificed” by the French government, which firmly supported the imposition by the EU of additional customs duties on electric cars imported from China – definitively confirmed this week by Brussels.
In response to this measure, which it considers protectionist, China is threatening to overtax European brandies (wine-based spirits), of which cognac represents 95%. Since mid-October, it has already required importers to deposit a deposit with Chinese customs. China alone represents 25% of cognac exports.
Ongoing anti-dumping investigations
Even before the confirmation of European surcharges on cars, Beijing had also launched anti-dumping investigations targeting pork and dairy products imported from Europe, posing a threat to these sectors.
Sophie Primas will notably attend the China International Import Fair (CIIE) in Shanghai, a major annual economic event in China. France will have the status of guest of honor at this fair and will have a total of around 130 companies present.
Paris, however, wishes to adopt a balanced tone during this ministerial visit. France does not want to have “simply an offensive positioning” and “enter into a totally sterile confrontation with China”, indicates the diplomatic source.
“We must not forget that we have a huge number of French companies which depend on the Chinese market (…) There is no question for us of not highlighting them, of not listening to them”, we emphasize.
